Spinning fake policy, ignoring the real kind


The U.S. economy is huge, employing 145 million people. It’s also ever-changing: Industries and companies rise and fall, and there are always losers as well as winners. The result is constant “churn,” with many jobs disappearing even as still more new jobs are created. In an average month, there are 1.5 million “involuntary” job separations (as opposed to voluntary quits), or 75,000 per working day.

Why am I telling you this? To highlight the difference between real economic policy and the fake policy that has lately been taking up far too much attention in the news media.

Real policy, in a nation as big and rich as America, involves large sums of money and affects broad swaths of the economy. Repealing the Affordable Care Act, which would snatch away hundreds of billions in insurance subsidies to low- and middle-income families and cause around 30 million people to lose coverage, would certainly qualify.

Consider, by contrast, the story that dominated several news cycles a few weeks ago: Donald Trump’s intervention to stop Carrier from moving jobs to Mexico. Some reports say 800 U.S. jobs were saved; others suggest the company will simply replace workers with machines. But even accepting the most positive spin, for every worker whose job was saved in that deal, around a hundred others lost their jobs the same day.

In other words, it may have sounded as if Mr. Trump was doing something substantive, but he wasn’t. This was fake policy — a show to impress the rubes, not to achieve real results.

The same goes for the hyping of Ford’s decision to add 700 jobs in Michigan — or for that matter, Mr. Trump’s fact-challenged denunciation of General Motors for manufacturing the Chevy Cruze in Mexico (that factory mainly serves foreign markets, not the U.S.).

Did the incoming administration have anything to do with Ford’s decision? Can political pressure affect G.M.? It hardly matters: Case-by-case intervention from the top is never going to have a significant impact on a $19 trillion economy.

So why are such stories occupying so much of the media’s attention?

The incoming administration’s incentive to engage in fake policy is obvious: It’s the natural counterpart to fake populism. Mr. Trump won overwhelming support from white working-class voters, who believed he was on their side. Yet his real policy agenda, aside from the looming trade war, is standard-issue modern Republicanism: huge tax cuts for billionaires and savage cuts to public programs, including those essential to many Trump voters.

So what can Mr. Trump do to keep the scam going? The answer: showy but trivial interventions that can be spun as saving a few jobs here or there. It may work as a P.R. strategy, at least for a while.

None of this would work without the complicity of the news media. And I’m not talking about “fake news,” as big a problem as that is becoming; I’m talking about respectable, mainstream news coverage.

Sorry, folks, but headlines that repeat Trump claims about jobs saved, without conveying the essential fakeness of those claims, are a betrayal of journalism.

And it’s even worse if headlines inspired by fake policy crowd out coverage of real policy.

It is, I suppose, possible that fake policy will eventually produce a media backlash — that news organizations will begin treating stunts like the Carrier episode with the ridicule they deserve. But nothing we’ve seen so far inspires optimism.



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